A given supply curve has a zero intercept. At the current equilibrium price the price elasticity of supply equals
A) 1.
B) 0.
C) 2.
D) Not enough information is provided.
D
You might also like to view...
In which market would the price be least likely to be "sticky"?
A) refrigerators B) steel rods C) trucks D) fresh fruit
Suppose the world price of a good is $4. Based on the table below, the country would
Price Q Demanded Q Supplied 2 100 70 4 95 75 6 90 80 8 85 85 10 80 90 12 75 95 A) import 20 units. B) export 20 units. C) import 10 units. D) export 10 units.
Government budget deficits
a. discourage household saving, which increases interest rates and reduces planned investment spending b. encourage household saving, which increases the funds available for planned investment spending c. reduce the demand for funds, lower interest rates, and increase planned investment spending d. discourage planned investment spending by putting upward pressure on interest rates e. stimulate economic growth by encouraging capital investment
The tradeoffs between rates of employment and inflation during the 1970s and 1980s forced economists to reassess their earlier beliefs about the Phillips curve to conclude that
a. the Phillips curve was upward sloping, not downward sloping as imagined b. rather than there being one Phillips curve, there is a set of such curves c. the expected trade-offs did not occur, meaning that policy to lower unemployment rates would not cause inflation d. the aggregate supply curve was a horizontal-vertical (two sides of a right angle) curve, as Keynesians believed e. the aggregate supply curve actually sloped downward because price levels fell whenreal GDP rose